Denmark · Delayed Price · Currency is DKK H+H International Earnings Call Transcripts
Fiscal Year 2025
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2025 delivered flat results with strong margins in Poland, UK, and Switzerland, but Germany remained challenging due to overcapacity and competition. 2026 guidance anticipates stable to slightly negative growth, with weather and energy costs as key risks.
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Q3 2025 results met expectations with 2% organic growth, 24% gross margin, and strong performance in Poland, while the U.K. saw a sudden volume drop impacting the outlook. Guidance for organic growth and EBIT was revised downward due to market volatility.
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Group results for H1 2025 were heavily impacted by a weak German market, prompting a major restructuring and asset write-downs, while Poland and the UK delivered strong growth and margins. Guidance for organic growth and EBIT was revised downward, with no near-term recovery expected in Germany.
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German market weakness has led to a major restructuring, including plant closures, asset impairments, and a shift to regional profit centers. The group’s outlook is revised down, but other regions remain strong, and a strategic review is underway to explore future options.
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Q1 2025 saw improved KPIs and stable performance, with strong growth in the U.K. and stable results in Poland, while Germany remains weak. Guidance for 2025 is unchanged, with organic growth expected at 5-10% and EBIT before special items at DKK 120-180 million.
Fiscal Year 2024
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Q4 saw a return to growth and margin improvement, driven by strong U.K. and Polish performance, while Germany remained weak. Streamlining and asset sales improved cash flow and gearing, with 2025 guidance reflecting cautious optimism amid ongoing macro uncertainty.
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Q3 2024 saw a strong recovery with a 24% gross margin, 5% volume growth, and the highest EBIT in seven quarters, driven by operational improvements and market recovery in Poland and the U.K. Guidance for 2024 EBIT was narrowed, and gearing is set to improve after the Warsaw plant sale.
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Double-digit revenue growth in the U.K. and Poland offset by a 25% decline in Germany, with group gross margin impacted by destocking and gas hedges but expected to normalize. Guidance narrowed due to German market weakness, while the Warsaw land sale will improve liquidity.